Ethereum News Today: Whales Stake Bets as Ethereum Tests $4,150 Survival Line

Ethereum is facing a significant price correction, with market data indicating growing risks for traders. Over the past 24 hours, nearly $870 million in leveraged positions have been liquidated, of which Ethereum accounts for approximately $210.6 million. The price of ETH has dropped to around $4,255, marking a 10.6% decline from this month's peak of $4,759. The liquidation pressure is concentrated around key support levels, particularly the $4,170 area, where over 56,638 ETH long positions—valued at $236 million—are at risk of being forced to close. Additional liquidation clusters have been identified near $3,940 and $2,150–$2,160, indicating potential for further volatility if these thresholds are breached [2].

The broader crypto market has also experienced a sharp pullback, with Bitcoin falling below $116,000 and altcoins like Solana (SOL) and XRP (XRP) following suit. This correction has been exacerbated by profit-taking among both institutional and retail investors, particularly through U.S.-listed Ethereum ETFs. After weeks of record inflows, the ETFs have seen substantial outflows in recent days, with one major withdrawal reaching $272 million. This shift in investor behavior has contributed to a thinning of liquidity on centralized exchanges, compounding the downward pressure on prices [3].

From a technical perspective, Ethereum is currently testing key support levels. The 20-day EMA sits at $4,134, and a failure to hold above this level could lead to further downward movement, with the next major support zone estimated at the 50-day EMA of $3,651. On-chain data suggests that whales and institutional players have been accumulating ETH in the $4,000–$4,150 range, with over 341,000 ETH held in this price zone. However, the increased presence of leveraged longs and short-term traders remains a vulnerability, as large liquidation events could deepen the correction.

Market sentiment has shifted rapidly, with Ethereum's fear-and-greed index dropping below 2.0, a level historically associated with investor caution. Analysts suggest that while the short-term outlook remains volatile, the long-term bullish case for Ethereum remains intact, provided the price holds above $4,150 on a weekly basis. A recovery above $4,500 would signal renewed strength, while a sustained break below $4,200 could lead to further losses, pushing the price closer to $3,800. The market is now closely watching for signs of stabilization, particularly in the coming days as ETH trades near key support and resistance zones [5].

Looking ahead, Ethereum’s price trajectory will depend heavily on macroeconomic factors, including the upcoming remarks from Federal Reserve Chair Jerome Powell and the broader uncertainty around rate cuts. Additionally, structural factors such as the rise in corporate staking and the locking of ETH in institutional treasuries are reshaping the supply dynamics of the asset. As of the latest data, 17.3 billion in ETH is held by corporate treasuries, or roughly 3.4% of the total supply, according to CoinShares. This accumulation trend, while positive for long-term demand, has also reduced the circulating supply, amplifying the impact of short-term outflows and liquidation events [3].

Source: [1] $500M Liquidations Rock Ethereum and Bitcoin (https://bitcoinist.com/500m-liquidations-rock-ethereum-and-bitcoin-crash/) [2] Ether Market May Become More Exciting Below $4.2K (https://www.coindesk.com/markets/2025/08/18/ether-market-may-become-more-exciting-below-usd4-2k-here-is-why) [3] Ethereum Drops to $4,320 After $4,795 Peak as $870M (https://www.tradingnews.com/news/ethereum-price-retreats-to-4320-usd) [4] Wall Street Issues Serious $6.6 Trillion Crypto Warning As (https://www.forbes.com/sites/digital-assets/2025/08/18/wall-street-issues-serious-66-trillion-crypto-warning-as-price-crash-fears-hit-bitcoin-ethereum-and-xrp/) [5] Ethereum price crash: Here's why ETH is down today (https://crypto.news/ethereum-price-crash-heres-why-eth-is-down-today/)